Sibos 2025: Standard Chartered expands global Islamic banking footprint with UK current account launch - Trade Treasury Payments

In an age when financial inclusion and ethical banking alternatives have become as crucial to modern finance as liquidity and capital adequacy, Standard Chartered announced the launch of Islamic Banking current accounts in the UK. This is a strategic expansion of Shariah-compliant services into Western financial centres.

This implementation showcases both the growing mainstream acceptance of faith-based finance and Standard Chartered’s commitment to diversifying its product offerings in established and emerging markets.

Strategic expansion and market positioning

Standard Chartered Saadiq, the Bank’s Islamic banking arm, already operates across more than 25 countries, positioning it as the only international bank with a truly global Islamic banking franchise. The UK product launch is a strategic response to the growing demand for alternative banking solutions that align with religious principles while maintaining competitive functionality.

Joanne Fraser, Head of Transaction Banking, UK and Regional Head of Cash Product, UK & Europe stated, “Standard Chartered is incredibly well positioned to meet the growing appetite for Islamic Banking products in the UK, with our global presence and unique network enabling us to connect our clients with dedicated Islamic banking teams, as we progress towards offering our full suite of Islamic cash management products whilst adhering to Shariah-compliant principles.”

The bank’s latest report projects that global Islamic finance assets will reach $7.5 trillion by 2028, up from $5.5 trillion in 2024, a substantial growth trajectory that reflects both increasing demand and institutional development across the Islamic finance space.

This is not merely a UK story, but is a fundamental shift in global financial services.

Khurram Hilal, CEO of Group Islamic Banking at Standard Chartered, emphasised that, “Islamic Banking is no longer seen as an exclusive proposition. As solutions become more sophisticated, it has become increasingly appealing to a wider client base, who recognise the benefits of a profit-sharing, non-interest alternative to conventional banking.”

Operational implementation and client adoption

The Saadiq Account has been approved by an independent Shariah Supervisory Committee, with funds segregated and used exclusively for Shariah-approved purposes. This segregation provides the transparency and compliance assurance needed for clients seeking genuine adherence to Islamic financial principles.

Standard Chartered has already welcomed its first pilot clients, including Turkish participation banks. As per Serhan Yıldırım, Executive Vice President at Albaraka Türk Katılım Bankası A.Ş., “Unlocking access to a global network with a longstanding history in Islamic Banking gives us great confidence in collaborating with a trusted partner like Standard Chartered.”

 “We are pleased to be working with Standard Chartered to access their Saadiq offering, with their expertise in Islamic Banking alongside their unique cross-border network, this announcement marks a positive step in Islamic Banking product innovation, which we are proud to play a role in,” added Tarık Börekci, Executive Vice President, Treasury and Strategy at Vakif Katilim Bankasi A.S.

Time will tell whether Standard Chartered’s UK Islamic banking initiative is the beginning of a sustainable new chapter in Western Islamic finance or merely addresses a limited market segment.